According to Custom Market Insights (CMI), The Global Data Center Colocation Market was estimated at around USD 50.4 billion in 2021, growing at a CAGR of nearly 14.2% from 2022 to 2030. The market is projected to reach approximately USD 131.8 billion by 2030.
Data center colocation Market offers a comprehensive and deep evaluation of the market stature. Also, the market report estimates the market size, revenue, price, market share, market forecast, growth rate, and competitive analysis.
Data Center Colocation Market: Overview
Data center colocation is when a service provider rents out vast amounts of floor space, internet bandwidth, and network from an existing data center to establish its own data center, store massive amounts of data, and oversee the server operations of big businesses. It enables data center colocation by sharing the existing infrastructure of data center resources.
As a result of the COVID-19 outbreak, colocation is becoming an essential component of staying connected, collaborating, and moving forward cost-effectively and safely. Healthcare organizations analyze patient outcomes using data and anticipate the spread of diseases using artificial intelligence. Strong network connectivity at Telehouse colocation centers in New York enables them to provide a range of commercial solutions.
Browse the full “Data Center Colocation Market Size, Trends and Insights By Type (Retail, Wholesale), By Enterprise Size (SMEs, Large Enterprises), By End Use Insights (Retail, BFSI, IT & Telecom, Healthcare, Others), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2023–2032” report at https://www.custommarketinsights.com/report/data-center-colocation-market/
Growth Factors
Over the projected period, it is predicted that the fast expansion of structured and unstructured data and the rising demand for cloud computing will drive the growth of the worldwide data center colocation market. Another factor anticipated to accelerate the development of colocation data centers is the rising capital expense associated with owning and maintaining sizable computing facilities.
A trend that is anticipated to continue during the projected period is that predictable prices, high dependability, simple scalability, and overall reduced costs are some of the primary reasons impacting colocation demand. High-capacity networks are becoming increasingly important as edge computing applications take off. Multi-locational hybrid data architectures have developed due to network latency challenges and the demand for instantaneous real-time insights.
Data transmission between data centers or private exchange points has therefore become crucial. Additionally, as more companies move their operations to the cloud, more bandwidth is needed to support quicker data processing and smoother data transfer. The growth of immersive technologies like augmented reality, virtual reality, and artificial intelligence (AI), as well as 5G technology, has further contributed to the requirement for providing larger bandwidths for data transfer across organizations.
The continuous use of several disruptive technologies, including cloud computing, IoT, autonomous cars, and sophisticated robotics, is another factor driving the growing demand for colocation in data centers. Lower latency has become increasingly in demand due to the ongoing development of these technologies and the ensuing adoption of smart devices. As a result, colocation gives cloud service providers the chance to relocate their data center facilities close to the consumers, resulting in high bandwidth and low latency in data transfer.
Segmental Overview
The data center colocation market is segmented into type, enterprise size, and end-use insights. According to the type, the retail colocation category is expected to increase quickly. Numerous advantages this kind offers, including managed service, which results in cheaper costs for data center maintenance, high data security, and others, are credited with the segment’s rise.
The global market is divided into small and minimum-scale enterprises and large enterprises, depending on the enterprise size. Large-scale organizations had the majority of the market share for data center colocation and are anticipated to keep expanding over the projected period. Heavy investment by big-size organizations in data centers is credited with this increase. Additionally, the worldwide market for data center colocation is being driven by major enterprises’ increasing need for substantial data storage.
The market is divided into IT & Telecom, BFSI, Healthcare, and others. The IT and telecom industries had the largest proportion in 2021, followed by the banking, financial, and insurance sectors. In the projection term, the CAGR for the IT & Telecom category is expected to be high. Due to ongoing patient data monitoring and storage, which have greatly expanded since the COVID-19 pandemic in 2021, the healthcare subsegment also offers significant development potential throughout the projection period.
Regional Overview
North America held the biggest market share in the data center colocation market. This is because several significant cloud service providers are well-represented in the area, and SMEs are also setting up colocation data centers there. Additionally, rising e-commerce sales in the United States foster regional market expansion. To determine client buying habits and product requests based on several categories, such as area, gender, and age group, retailers are investing extensively in their IT infrastructure to keep customer data.
Report Scope
| Feature of the Report | Details |
| Market Size in 2021 | USD 50.4 billion |
| Projected Market Size in 2030 | USD 131.8 billion |
| CAGR Growth Rate | 14.2% CAGR (2022-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2033 |
| Prominent Players | China Telecom Corp. Ltd., CoreSite Realty Corp., CyrusOne Inc., NaviSite, NTT Communications Corp., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch, Telehouse, and Others |
| Key Segment | By Type, Enterprise Size, End Use Insights, and Region |
| Report Coverage | Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends |
| Regional Scope | North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America |
| Buying Options | Request tailored purchasing options to fulfil your requirements for research. |
Key Players Insights
The players have implemented various strategies to expand the global data center colocation market. The study contains a thorough competitive analysis of the major data center colocation market participants and information on their company overviews, recent developments, and vital business strategies.
Key Players
- China Telecom Corp. Ltd.
- CoreSite Realty Corp.
- CyrusOne Inc.
- NaviSite
- NTT Communications Corp.
- Cyxtera Technologies Inc.
- Digital Realty Trust Inc.
- Equinix Inc.
- Global Switch
- Telehouse
The global Data Center Colocation market is segmented as follows:
By Type
- Retail
- Wholesale
By Enterprise Size
- SMEs
- Large Enterprises
By End Use Insights
- BFSI
- Healthcare
- Energy & Utility
- It & Telecom
- Retail & E-Commerce
- Manufacturing
- Government & Public Sector
- Media & Entertainment
- Others
On the basis of Geography
North America
- The U.S.
- Canada
- Mexico
Europe
- France
- The UK
- Spain
- Germany
- Italy
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
Latin America
- Brazil
- Argentina
- Rest of Latin America